Immediate expensing of capital property for self-employed individuals

If you carry on an unincorporated business and acquired a capital property in 2022, you may be eligible to claim a 100% deduction of the expenditure this year. The immediate expensing rules allow eligible individuals and partnerships to take a full deduction of up to $1.5 million of capital property acquired on or after January 1, 2022. The property must become available for use before 2025 and certain capital cost allowance classes are not eligible for the enhanced deduction.

While immediate expensing was available to Canadian-controlled private corporations (CCPCs) since 2021, 2022 will be the first year in which eligible individuals and partnerships can take advantage of the deduction. Note that the $1.5 million annual limit must be shared among members of an associated group of eligible persons (including CCPCs) and partnerships.

To find out more about this change, read our article: Immediate expensing of certain depreciable property.